Savers take more than £8bn from accounts

itsnever2lateisit?

Sir_Humphrey wrote: »

It is the real rate of return that counts. YoY RPI is 0.1%, and prices have been falling MoM since the late autumn. With deflation, savers get a return even at 0% interest, and continue to outperform other investments. Don't fall victim to money illusion.

We savers need to stop whinging.

I hear what you say, but, MY money should be working for me, not just a bank/building society

Sir_Humphrey

ad9898 wrote: »

The question I want answering is RPI is at .1%, CPI is at 3%, why do we use CPI when inflation is going up, and all of a sudden we use RPI when inflation is going down. The simple reason seems to me is to keep interest rates low, and so try to blow some air in to burst housing bubble.

Like I say a question I would like answering.

The BoE are still targeting YoY CPI inflation. They know that CPI is going to fall below 2% YoY for the same reason we knew that house prices would fall YoY - the earlier gains fall out of the YoY statistics:

MoM CPI for 2008/9:

2008 Jan -0.7
2008 Feb 0.8
2008 Mar 0.5
2008 Apr 0.7
2008 May 0.7
2008 Jun 0.7
2008 Jul 0.0
2008 Aug 0.7
2008 Sep 0.6
2008 Oct -0.2
2008 Nov -0.1
2008 Dec 0.9
2009 Jan -0.8

It is normal for CPI to fall in January owing to the sales, but it is clear that even if prices stabilise between now and May, CPI will fall sharply at the price rises last spring fall out of the stats. Like all MoM data, there is noise.

Basic stats lesson over.

Sir_Humphrey

itsnever2lateisit? wrote: »

I hear what you say, but, MY money should be working for me, not just a bank/building society

People who expect to make money from money in that way are Rentiers, just like BTL landlords. An economy needs people to engage in productive work. That's Capitalism. I expect my savings to be in line with inflation, any money earned on top is a bonus. Why should people make a profit with no risk?

Old_Slaphead

Sir_Humphrey wrote: »

People who expect to make money from money in that way are Rentiers, just like BTL landlords. An economy needs people to engage in productive work. That's Capitalism. I expect my savings to be in line with inflation, any money earned on top is a bonus. Why should people make a profit with no risk?

Given that current CPI is 3.0% - I'd be quite happy and would stop whinging with a 3.75% gross return with no risk or tie in.

ad9898_3

Sir_Humphrey wrote: »

The BoE are still targeting YoY CPI inflation. They know that CPI is going to fall below 2% YoY for the same reason we knew that house prices would fall YoY - the earlier gains fall out of the YoY statistics:

MoM CPI for 2008/9:

2008 Jan -0.7
2008 Feb 0.8
2008 Mar 0.5
2008 Apr 0.7
2008 May 0.7
2008 Jun 0.7
2008 Jul 0.0
2008 Aug 0.7
2008 Sep 0.6
2008 Oct -0.2
2008 Nov -0.1
2008 Dec 0.9
2009 Jan -0.8

It is normal for CPI to fall in January owing to the sales, but it is clear that even if prices stabilise between now and May, CPI will fall sharply at the price rises last spring fall out of the stats. Like all MoM data, there is noise.

Basic stats lesson over.

Thanks for that, I was asking a serious question, and you answered it, all up until the patronising bollox at the end.

Sir_Humphrey

2008 Jan -0.5
2008 Feb 0.8
2008 Mar 0.3
2008 Apr 0.9
2008 May 0.5
2008 Jun 0.8
2008 Jul -0.1
2008 Aug 0.3
2008 Sep 0.6
2008 Oct -0.3
2008 Nov -0.8
2008 Dec -1.4
2009 Jan -1.3

These are the non-SA MoM RPI figures. As can be seen, RPI deflation is almost inevitable next month.

BTW, no intention to be patronising - these are basic stats, which the Daily Wail seems to be incapable of understanding. My barb there was aimed at tabloid journos rather than people here.

A._Badger

Of course, this argument only works if you actually believe the statistics. Which is rather hard to do with anything pumped out by this dissembling government.

Moreover, the ability to obtain a good return on capital is the wellspring of a successful economy. Take that incentive away and the engine seizes up.

Really2

Sir_Humphrey wrote: »

2008 Jan -0.5
2008 Feb 0.8
2008 Mar 0.3
2008 Apr 0.9
2008 May 0.5
2008 Jun 0.8
2008 Jul -0.1
2008 Aug 0.3
2008 Sep 0.6
2008 Oct -0.3
2008 Nov -0.8
2008 Dec -1.4
2009 Jan -1.3

These are the non-SA MoM RPI figures. As can be seen, RPI deflation is almost inevitable next month.

BTW, no intention to be patronising - these are basic stats, which the Daily Wail seems to be incapable of understanding. My barb there was aimed at tabloid journos rather than people here.

Especialy now home energy price cuts are coming in to force. Most suppliers are knocking out 7.5% that is going to dent things further.

itsnever2lateisit?

Sir_Humphrey wrote: »

People who expect to make money from money in that way are Rentiers, just like BTL landlords. An economy needs people to engage in productive work. That's Capitalism. I expect my savings to be in line with inflation, any money earned on top is a bonus. Why should people make a profit with no risk?

I wish I was a rentier, but for the next 20 years at least, I am going to have to work for my corn.
Even so the banks want their cake and eat it, by increasing rates to borrowers while getting their hands on money cheaper, and by their deeds have stated that they no longer wish to borrow from me

Really2

itsnever2lateisit? wrote: »

IEven so the banks want their cake and eat it, by increasing rates to borrowers while getting their hands on money cheaper, and by their deeds have stated that they no longer wish to borrow from me

From what I hear you are not covered for up to £50k getting stolen, burnt down or lost from your home but you are by a bank.

Imagine how much it would cost you to insure your home if you said you wanted to cover £50K in cash also. I dont see saving as just a money making machine, it is security also.